A growing number of concussions in America’s National Hockey League (NHL) has resulted in insurance companies threatening to jump ship and leave the financial burden on clubs.
Since the season began in October last year there have already been around 60 players sidelined with head injuries. As a result some specialist sports insurance companies say the NHL’s teams will have to absorb the multi-million dollar losses this bring.
Howard Bloom from Sports Business News said that if insurers do pull out it would be “potentially devastating” for the game.
“It’s implications are really very, very terrifying for the National Hockey League and the sport of hockey”
One recent prominent case was when the captain of the Pittsburg Penguins, Sidney Crosby was sidelined with a head injury.
“In the case of Sidney Corsby about 90 percent of his contract is covered against his concussions if he can’t play games.”
The Penguins managed to dodge the payout for Crosby’s USD9 million (£5.7m) contract because they had insurance which covered absence due to injury for more than 30 games.
“What [the insurance companies] are suggesting is that after a player suffers one concussion they’re not going to cover that player.”
What this would mean is that when a player is injured the club would be left on their own to cover the multi-million dollar contracts without any help from insurers.
While some of the larger teams will be able to absorb this, many smaller teams may risk going under.
Bloom continued, “it’s also going to put up liability insurance in term of the earning potential of a player. If a star junior hockey player suffers a concussion and then becomes un-insurabe as a professional hockey player, you are opening up a legal nightmare
“The implications of this are absolutely mind boggling for the sport of hockey”
